In , Finolex Cables Ltd (Cables - Telecom) is outperforming Nifty 500 with +49.4% relative strength. Fundamentals: Weak. On a 5-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Capacity Utilization: Late 70s for solar/auto/power
“Utilization, like I mentioned earlier, solar, auto and power cable plant utilizations are in the late 70s, Others are catching up.”
What: Solar Cable Utilization: 80%-85%
“Big new entrant for us during the quarter was Solar Cables, we are currently hitting close to 80%-85% of our capacity.”
What: Fiber Price Realization: $3 to $5
“prices currently as on date, are closer to $5 a month so that's the extent of the demand pull that has happened over the last few months.”
What: Auto Cable Volume Growth of 42%
“Individual product lines performed slightly differently. Electric Wires was about 28% in the quarter, Auto cables were almost 42% in the quarter.”
Earnings deceleration risks from management commentary
Trigger: Global market fluctuations in raw material prices.
Management view: Taking multiple price corrections (12% in Q3) and avoiding long procurement calls.
Monitor: commodity
Trigger: Reassessment of obligations following the announcement of the new labor code effective Nov 21st.
Impact: PAT impact: ₹6 Cr
Management view: Provision already booked in the current quarter.
Monitor: labor
Trigger: Shareholder-level dispute that remains sub judice.
Management view: Management maintains that this is a shareholder issue and does not comment on it at the company level.
Monitor: litigation
Key quotes from recent conference calls
“Both the major spends that we had announced one year ago would then be completed by March '26. [Previous Capex Completion guidance]”
“we made a statement somewhere saying that we would reach a number of INR 500 crores by 2028 or so and I think that target is still within reach. [Previous FMEG Revenue Target guidance]”
“if I am importing from the U.S. or any other place, there is a 5% duty, so, that would be straight away saved. [Initiative: Backward Integration into Preforms]”
“Even in the last couple of weeks, you have seen movements which have taken it up to 14,000, then it's back to 12,800 and then again back to 13,200. It is a bit of a yoyo. [Risk (commodity): HIGH]”
Headline numbers from the latest earnings call
Revenue
₹1,600 Cr
Why: Growth was driven by a quantity-led performance across product lines, specifically a 25-26% volume increase in Wires and Cables.
Revenue growth was broad-based across electric, auto, industrial, and power cables, despite seasonal weakness in agriculture.
EBITDA
Not Disclosed
Why: The improvement in EBITDA followed the volume-led revenue growth and successful pass-through of commodity price increases.
EBITDA growth aligned with the nine-month revenue trajectory, showing stable operational performance.
PAT
Not Disclosed
Why: PAT growth was supported by higher volumes and operational efficiencies, partially offset by a ₹6 crore gratuity provision.
PAT growth remained resilient despite the one-time impact of the new labor code provision.
Other Highlights
• Wires and Cables volume increased by 25%-26% during the quarter.
• Solar Cables reached 80%-85% capacity utilization shortly after launch.
• Cash flow from operations reached ₹78 Cr for the quarter vs ₹9 Cr YoY.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Solar Cable Capacity Utilization
80%-85%
Why: Strong initial traction for the new Solar Cable product line.
Auto Cable Volume Growth
42%
Why: High demand from the automotive sector.
Inventory Days
61 days
Why: Management is squeezing raw material, WIP, and finished goods inventory to improve efficiency.
Fiber Draw Capacity
8 million km
Why: Expansion from 4 million to 8 million km to meet rising demand.
Selling Price Correction
12%
Why: Multiple price hikes taken to cover the increase in copper and commodity costs.
Telecom Cable Market Share
11%-12%
Sustainable Cable EBIT Margin
11%-12%
Why: Adjusted for the 2-3% impact of moving to a distribution model.
Capex Planning Utilization Threshold
70%
Why: Management initiates new capacity planning once current utilization hits this level.
Forward-looking targets from management for Full Year (Post-stabilization)
OPM Guidance
8–10%
₹600 Cr to ₹700 Cr
Communication segment margins expected to return to 8-10% levels.
Fiber draw capacity to reach 8 million kilometers.
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +35% | +12% | Stable |
| PAT (Net Profit) | +12% | +5% | Stable |
| OPM | 10.0% | -200 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Finolex Cables Ltd's latest quarterly results (Dec 2025) show
Finolex Cables Ltd's profit is growing with an stable trend.
Finolex Cables Ltd's revenue growth trend is stable.
Finolex Cables Ltd's operating margin is stable.
Finolex Cables Ltd's long-term compounding rates
Finolex Cables Ltd's earnings growth is stable with improving on a sequential basis.
Finolex Cables Ltd's trailing twelve month (TTM) performance
Finolex Cables Ltd appears overvalued based on our fair value analysis.
Finolex Cables Ltd's current PE ratio is 22.2x.
Finolex Cables Ltd's current PE is 22.2x.
Finolex Cables Ltd's price-to-book ratio is 2.7x.
Finolex Cables Ltd is rated Weak with a fundamental score of 38.05/100. This score is calculated from objective financial metrics
Finolex Cables Ltd has a debt-to-equity ratio of N/A.
Finolex Cables Ltd's return ratios over recent years
Finolex Cables Ltd's operating cash flow is positive (FY2025).
Finolex Cables Ltd's current dividend yield is 0.81%.
Finolex Cables Ltd's shareholding pattern (Mar 2026)
Finolex Cables Ltd's promoter holding has remained stable recently.
Finolex Cables Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Finolex Cables Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Finolex Cables Ltd has 4 key growth catalysts identified from recent earnings analysis
Finolex Cables Ltd has 3 key risks worth monitoring
In Q3 FY26, Finolex Cables Ltd's management highlighted
Finolex Cables Ltd's management has provided the following forward guidance for Full Year (Post-stabilization)
Finolex Cables Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Finolex Cables Ltd may be worth studying
Finolex Cables Ltd investment thesis summary:
Finolex Cables Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
